Earnings call transcript: Mastermyne posts strong H2 2026 growth, shares slip

Mastermyne Group reported a strong H2 2026 performance in its earnings call, with revenue and profit both surpassing expectations. The underground coal services company saw revenue rise 13% to AUD 237.7 million, while underlying EBITDA increased by 47% to AUD 20.3 million. This marked a significant improvement, with the EBITDA margin jumping from 6.6% to 8.5%.

The company's order book reached AUD 432 million, up 38% year over year, and net cash improved to AUD 46.5 million, giving Mastermyne more room to fund growth initiatives.

Despite the positive operating results, Mastermyne's shares fell 6.67% to $0.56 from $0.60 following the earnings release. The stock remains within its 52-week range of $0.12 to $0.625. Management highlighted the company's diversified customer base, with the top three customers accounting for 79% of revenue, down from about 80% in the previous year. This broader mix reduced reliance on any single contract, contributing to the company's resilient financial health.

Mastermyne did not provide formal FY 2027 earnings guidance but indicated strong revenue visibility. The company secured approximately AUD 200 million of FY 2027 revenue, including AUD 155 million from existing orders and AUD 40 million to AUD 45 million from the first year of the new Dendrobium contract. Management expects the order book to grow to AUD 432 million and workforce to expand to around 1,000 employees, including about 140 additional workers for the Dendrobium mobilization.

The company's capital-light strategy continues, with a nil final dividend declared and liquidity standing at AUD 76 million, including an undrawn AUD 30 million working capital facility.